Zacks Equity Research, Author at Elite Stock Chat

LMT – Lockheed (LMT) Wins Contract to Support Trident II Missile

Written by Zacks Equity Research on May 29, 2023. Posted in LMT, Stock Report.

Lockheed Martin Corp.’s (LMT – Free Report) Space business segment clinched a modification contract involving Trident II (D5) missile. The award has been offered by the Strategic Systems Programs, Washington, DC.

Valued at $27.1 million, the contract is expected to be completed by Sep 30, 2027. Per the terms of the deal, Lockheed will offer services related to production and deployed systems support for Trident II (D5) missile.

Majority of the work related to this deal will be executed in Magna, UT.

Significance of Trident II

The Trident II D5 fleet ballistic missile is a program with the U.S. Navy for the only submarine-launched intercontinental ballistic missile currently under production in the United States. It is the latest generation of the navy’s submarine-launched fleet ballistic missiles, following the highly successful Polaris, Poseidon and Trident I C4 programs.

Lockheed’s Space Systems unit is the prime contractor for the development, production and support equipment of this missile. The company also supplies technical and logistical support at the sites of the missile’s deployment.

Due to its remarkable features, which are well-suited for any military mission, Lockheed continues to witness a steady inflow of orders involving the Trident. The latest contract win is a testament to that. This shall bolster LMT’s revenues from the Space Systems unit.

Growth Prospects

Of late, nations have been increasing their spending on modernization and upgrading of defense military equipment and weaponry amid rising geopolitical tensions. Consequently, the demand for missiles is likely to gain momentum as these play a very important role in military missions.

Per Markets and Markets projections, the global missile defense system market is expected to witness a CAGR of more than 3.9% over the 2021-2036 period. Such projections exemplify immense opportunities for Lockheed to capitalize on the growing demand.

Prominent defense majors that are likely to enjoy the perks of the expanding missile defense market are Northrop Grumman (NOC – Free Report) , General Dynamics (GD – Free Report) and Raytheon (RTX – Free Report) that are involved in missile manufacturing or providing support services for the same.

Northrop Grumman’s Missile Products business unit is a leading U.S. supplier of solid rocket propulsion for national security and defense. It provides stages for weapon systems, such as air-launched missiles, interceptors, submarine-launched systems and hypersonic missile systems.

The company has a long-term earnings growth rate of 3.8%. The Zacks Consensus Estimate for NOC’s 2023 sales indicates an improvement of 4.7% from the year-ago reported figure.

General Dynamics’ Ordnance and Tactical Systems designs, develops and produces a comprehensive range of sophisticated weapon systems for ground forces. It also produces next-generation weapon systems for shipboard and aircraft applications. The unit maintains a leading position in providing subsystems in support of U.S. tactical and strategic missiles.

GD boasts a long-term earnings growth rate of 8.9%. The Zacks Consensus Estimate for GD’s 2023 sales indicates an increase of 5% from the prior-year reported number.

Raytheon’s Missiles & Defense is a leading designer, developer, integrator, producer and sustainer of integrated air and missile defense systems. Its technology delivers unprecedented combat power to the world’s most sophisticated fourth and fifth-generation aircraft and across every mission phase.

RTX boasts a long-term earnings growth rate of 8.3%. The Zacks Consensus Estimate for the company’s 2023 sales implies improvement of 8.3% from the 2022 recorded figure.

Price Movement

In the past six months, shares of Lockheed have decreased 7.5% compared to the industry’s decline of 10.6%.

Image Source: Zacks Investment Research

Zacks Rank

Lockheed currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BIG – Big Lots (BIG) Q1 Loss Wider Than Expected, Revenues Fall Y/Y

Written by Zacks Equity Research on May 29, 2023. Posted in BIG, Stock Report.

Big Lots, Inc. (BIG – Free Report) reported an adjusted loss of $3.40 per share for first-quarter fiscal 2023, wider than the Zacks Consensus Estimate of a loss of $1.95. The metric was also wider than the year-ago quarter’s loss of 39 cents per share.

Net sales of this Columbus, OH-based player declined 18.3% to $1,124 million year over year and missed the Zacks Consensus Estimate of $1,186 million. The year-over-year downside was due to soft comparable sales. Comparable sales fell 18.2% and were hurt by roughly 300 basis points (bps) owing to product shortages in furniture stemming from the closure of the company’s largest vendor in November. Also, net decrease in store count, partially offset by new stores and relocations, contributed approximately 10 bps of sales decline from the first quarter of 2022. Quarterly results were hurt by the volatility caused by the macroeconomic environment.

Over the past three months, shares of this Zacks Rank #4 (Sell) company have plunged 54.5% compared with the industry’s 1.4% fall. Nonetheless, management has been making efforts to strengthen and transform the business model. It has also been taking actions to control costs.

Image Source: Zacks Investment Research

More on Results

Gross profit declined 22.2% year over year to $392.5 million. Big Lots’ gross margin contracted 180 bps to 34.9% from the year-ago quarter’s figure of 36.7%. Impacts from higher levels of late quarter promotions that targeted the seasonal and furniture categories hurt the metric.

In the reported quarter, adjusted selling general and administrative (SG&A) expenses were $474.9 million, down 8.3% year over year. As a percentage of net sales, the metric increased 460 bps to 45.3%. The company recorded an adjusted operating loss of $118 million in the reported quarter. BIG expects total SG&A expense savings of $100 million in 2023.

Other Financial Details

Big Lots ended the quarter with cash and cash equivalents of $51.3 million and long-term debt of $501.6 million. Total shareholders’ equity was $551.4 million. Inventories decreased to $1,088 million from $1,339 million recorded in the prior-year period.

For the 52 weeks that ended Apr 29, 2023, BIG used net cash worth $168.9 million from operating activities.

Big Lots’ board announced a suspension of dividend. At the end of the reported quarter, BIG had $159 million remaining under its $250 million share buyback authorization.

BIG concluded the quarter with more than 1,420 stores across 48 states.

On May 24, 2023, the company has entered into a letter of intent for sale and leaseback of the Apple Valley, CA, distribution center and corporate headquarters building in Columbus, OH. The value of the transaction is expected to be $240 million excluding $100 million remaining on synthetic lease. The closing date of this transaction is expected to be in the late second quarter or early third quarter of fiscal 2023.

Outlook

For the second quarter of fiscal 2023, management expects comps to decline in the high-teens range. Net new stores will contribute nearly 30 bps of growth from 2022. Big Lots anticipates the gross margin rate to slightly improve in the low-30s range.

With respect to fiscal 2023, BIG expects an improvement in financial results year over year. Management highlighted that earnings momentum is likely to be weighted toward the second half of the fiscal year, on better actions and reductions in freight costs. Given the highly volatile macroeconomic backdrop, management did not give guidance for the fiscal year.

3 Retail Stocks to Bet on

Some top-ranked stocks are Shake Shack Inc. (SHAK – Free Report) , The Kroger Co. (KR – Free Report) and The TJX Companies (TJX – Free Report) .

SHAK has a trailing four-quarter earnings surprise of 58.6%, on average. Shake Shack currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for SHAK’s current financial year sales and earnings suggests growth of 21.4% and 148.4%, respectively, from the year-ago reported numbers.

The Kroger Co., which operates in the thin-margin grocery industry, currently has a Zacks Rank of 2. KR has a trailing four-quarter earnings surprise of 9.8%, on average.

The Zacks Consensus Estimate for KR’s current financial year sales and earnings suggests growth of 2.5% and 6.6%, respectively, from the year-ago reported numbers.

The TJX Companies is a leading off-price retailer of apparel and home fashions. It currently carries a Zacks Rank of 2. TJX has a trailing four-quarter earnings surprise of 4.4%, on average.

The Zacks Consensus Estimate for TJX’s current financial year sales and earnings suggests growth of 6.4% and 14.5%, respectively, from the year-ago reported numbers.

MDT – Medtronic’s (MDT) EV ICD Pivotal Study Shows Favorable Outcome (Revised)

Written by Zacks Equity Research on May 29, 2023. Posted in MDT, Stock Report.

Medtronic (MDT – Free Report) recently declared the findings of its investigational Extravascular Implantable Cardioverter–Defibrillator (EV ICD) Study. These were presented as late-breaking science at Heart Rhythm 2023 in New Orleans. The results confirm that the system provides the advantages of a device with lead outside the heart and continues to provide pause prevention pacing and anti-tachycardia pacing to avoid shocks with prolonged follow-ups.

By providing a contemporary view of the real-world impact of ICDs, the EV ICD study underscores the importance of indicated patients receiving these potentially life-saving devices.

About the EV ICD System

The Medtronic EV ICD system is an implantable defibrillator, which is designed to treat dangerously fast heart rhythms that can lead to sudden cardiac arrests. This is the first system that offers anti-tachycardia pacing, pause prevention pacing, and a device similar in size, shape and battery longevity to transvenous ICDs.

Image Source: Zacks Investment Research

Study Findings

Of the 299 implanted patients followed through an average of 17.1 months, an estimated 6.8% of patients showed to have experienced appropriate therapy by 18 months, with 19 patients experiencing 80 spontaneous, appropriately treated arrhythmic episodes. Of the discrete episodes treated with shock, 100% were successfully terminated.

The rate of freedom from major EV ICD system-or-procedure-related complications through 18 months was 91.9%. The most common major complication was lead dislodgment, identified within 120 days post-implant, mostly related to the lead-anchoring technique. Inappropriate shocks occurred in 35 patients throughout all follow-ups.

Industry Prospects

Per a Research report, the global implantable cardioverter defibrillator market size was valued at $3.3 billion and is expected to witness a CAGR of 5.3% up to 2030.

Recent Developments

In May 2023, Medtronic received FDA approval for its Micra AV2 and Micra VR2 — the next generation of its industry-leading miniaturized, leadless pacemakers. The world’s smallest pacemakers provide longer battery life and easier programming than prior Micra pacemakers, while delivering the expanded benefits of leadless pacing compared to traditional pacemakers.

In April 2023, Medtronic announced the FDA approval of its MiniMed 780G system with the Guardian 4 sensor, which requires no fingerstick while in SmartGuard technology. This milestone marks the approval of the only system with meal detection technology that provides automatic adjustments and corrections to sugar levels every five minutes.

Price Performance

In the past six months, MDT shares have increased 10.1% compared with the industry’s rise of 5.8%.

Zacks Rank and Key Picks

Medtronic currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the overall healthcare sector are Penumbra (PEN – Free Report) , Lantheus (LNTH – Free Report) and Neuronetics (STIM – Free Report) . While Penumbra and Lantheus each sport a Zacks Rank #1 (Strong Buy), Neuronetics carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Penumbra’s stock has risen 118.3% in the past year. The Zacks Consensus Estimate for Penumbra’s earnings per share (EPS) has increased from $1.47 to $1.56 for 2023 and from $2.51 to $2.56 for 2024 in the past seven days.

PEN’s earnings beat estimates in each of the trailing four quarters, the average surprise being 109.42%. In the last reported quarter, the company registered an earnings surprise of 109.09%.

The Zacks Consensus Estimate for Lantheus’ 2023 EPS has increased from $4.95 to $5.60 in the past 30 days. Shares of the company have improved 51% in the past year against the industry’s 31.2% decline.

LNTH’s earnings beat estimates in each of the trailing four quarters, the average surprise being 25.77%. In the last reported quarter, the company recorded an earnings surprise of 13.95%.

Estimates for Neuronetics’ loss per share have narrowed from $1.32 to $1.29 for 2023 in the past seven days. Shares of the company have risen 14.8% in the past year compared with the industry’s 1.8% growth.

STIM’s earnings beat estimates in each of the trailing four quarters, the average surprise being 19.61%. In the last reported quarter, Neuronetics delivered an earnings surprise of 2.56%.

(We are reissuing this article to correct a mistake. The original article, issued on May 24, 2023, should no longer be relied upon.)

VMC – Is Vulcan (VMC) a Solid Growth Stock? 3 Reasons to Think “Yes”

Written by Zacks Equity Research on May 26, 2023. Posted in Stock Report, VMC.

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market’s attention and deliver solid returns. But finding a great growth stock is not easy at all.

In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.

However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company’s real growth prospects.

Our proprietary system currently recommends Vulcan Materials (VMC – Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.

Here are three of the most important factors that make the stock of this construction materials company a great growth pick right now.

Earnings Growth

Earnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Vulcan is 7.2%, investors should actually focus on the projected growth. The company’s EPS is expected to grow 26.1% this year, crushing the industry average, which calls for EPS growth of 15.1%.

Cash Flow Growth

While cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That’s because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.

Right now, year-over-year cash flow growth for Vulcan is 17.3%, which is higher than many of its peers. In fact, the rate compares to the industry average of -7.3%.

While investors should actually consider the current cash flow growth, it’s worth taking a look at the historical rate too for putting the current reading into proper perspective. The company’s annualized cash flow growth rate has been 13.3% over the past 3-5 years versus the industry average of 9%.

Promising Earnings Estimate Revisions

Superiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The current-year earnings estimates for Vulcan have been revising upward. The Zacks Consensus Estimate for the current year has surged 9.1% over the past month.

Bottom Line

While the overall earnings estimate revisions have made Vulcan a Zacks Rank #1 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

This combination indicates that Vulcan is a potential outperformer and a solid choice for growth investors.

NDAQ – Here’s Why Hold is an Apt Strategy for Nasdaq (NDAQ) Stock

Written by Zacks Equity Research on May 26, 2023. Posted in NDAQ, Stock Report.

Nasdaq Inc.’s (NDAQ – Free Report) improving organic growth, focus on ramping up the on-trading revenue base, buyouts to capitalize on growing market opportunities, effective capital deployment along with favorable growth estimates make it worth retaining in one’s portfolio.

NDAQ has a decent track record of beating earnings estimates in three of the last four quarters, the average being 4.40%. Earnings in the last five years grew 13.6%, better than the industry average of 10.5%.

Zacks Rank & Price Performance

Nasdaq currently carries a Zacks Rank #3 (Hold). In a year, the stock has gained 2.5% against the industry’s decrease of 6.2%.

Image Source: Zacks Investment Research

Northbound Estimate Revision

The Zacks Consensus Estimate for Nasdaq’s 2023 earnings has moved up by 2 cents, while the same for 2024 has moved north by 1 cent in the past 30 days, reflecting analysts’ optimism.

Optimistic Growth Projections

The Zacks Consensus Estimate for Nasdaq’s 2023 earnings is pegged at $2.71 per share, indicating a 1.9% increase from the year-ago reported figure on 3.6% higher revenues of $3.7 billion. The consensus estimate for 2024 earnings is pegged at $2.88, indicating a 6.2% increase from the year-ago reported figure on 5.2% higher revenues of $3.9 billion.

The expected long-term earnings growth rate is currently pegged at 4.4%. It carries a Growth Score of B.

Return on Equity

Return on equity was 22.2% in the trailing 12 months, better than the industry average of 10.8%.

Growth Drivers

Nasdaq’s focus on generating more revenues from high-growth Market Technology and Investment Intelligence segments and diverting R&D spending toward higher-growth products bodes well for growth. NDAQ targets 5-7% long-term growth from a non-trading revenue base.

To capitalize on the opportunities in cryptocurrency markets, Nasdaq has been accelerating its technology expansion. Its SMARTS surveillance in non-financial markets is in tandem with this growth strategy. Adena Friedman, chair & CEO of Nasdaq, stated that in recent times there has been a radical change in technological innovation in artificial intelligence. Thus, NDAQ has been making investments in proprietary data, and migrating markets and SaaS solutions to the cloud to reap benefits.

Nasdaq noted that the anti-fin crime space has a total addressable market of $12.5 billion and is expected to witness a CAGR of 17% through 2024. The acquisition of Verafin in February 2021 consolidated Nasdaq’s established reg tech leadership to create a global SaaS leader. Nasdaq aims 40-50% Saas revenues as a percentage of total revenues by 2025.

NDAQ estimates growth from its index and analytics businesses, followed by moderate growth in its exchange data products across U.S. and Nordic equities. Nasdaq estimates 5%-8% revenue organic growth in Investment Intelligence, 13%-16% in Market Technology and 3%-5% in Corporate Platform segments over the medium term.

Nasdaq has a healthy balance sheet and cash position along with modest operating cash flow from its diverse business model. This in turn should continue to support effective capital deployment.

Nasdaq has been hiking dividends at a nine-year CAGR (2018-2023) of 6%. It had $491 million remaining under authorization as of Mar 31, 2023.

However, due to a change in corporate structure, NDAQ expects to incur $115 million to $145 million in pretax charges, of which about 40% will be non-cash charges. Nonetheless, this will help unlock revenue synergies. Nasdaq estimates benefits in the form of combined annual run rate operating efficiencies and revenue synergies of at least $30 million by 2025.

Stocks to Consider

Some better-ranked stocks from the finance sector are CME Group (CME – Free Report) , Erie Indemnity (ERIE – Free Report) and Ryan Specialty Holdings (RYAN – Free Report) .

Estimates for CME Group’s 2023 and 2024 earnings have moved 0.8% north each in the past 30 days. CME Group carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for CME’s 2023 and 2024 earnings per share indicates a year-over-year increase of 9.5% and 1.5%, respectively. In the year-to-date period, ERIE has lost 12.2%.

Estimates for Erie Indemnity’s 2023 and 2024 earnings have moved 3.9% and 11.7% north, respectively, in the past 30 days. ERIE sports a Zacks Rank #1.

The Zacks Consensus Estimate for ERIE’s 2023 and 2024 earnings per share indicates a year-over-year increase of 26.1% and 13.6%, respectively. In the year-to-date period, ERIE has lost 12.2%.

The Zacks Consensus Estimate for Ryan Specialty Holdings’ 2023 and 2024 earnings per share indicates a year-over-year increase of 15.7% and 23.3%, respectively. In the year-to-date period, RYAN has gained 0.4%.

RYAN’s earnings surpassed estimates in two of the last four quarters, missed in one, and met estimates in one, the average beat being 2.67%. The stock carries a Zacks Rank #2.

J – Jacobs (J) Invests $4.6M to Build Robotic Research Center

Written by Zacks Equity Research on May 26, 2023. Posted in J, Stock Report.

Jacobs Solutions Inc. (J – Free Report) , the University of Manchester and the U.K. Engineering and Physical Sciences Research Council’s (EPSRC) Prosperity Partnerships program came ahead to co-fund a new international research center — Centre for Robotic Autonomy in Demanding and Long-lasting Environments (CRADLE). The research center will be built over a span of five years for a total value of $11 million.

CRADLE will engage in researching new technologies for heavily regulated sectors like space, nuclear decommissioning, energy generation and urban infrastructure. This research center will develop robotics and autonomous systems to offer primary support in climate response.

Jacobs will invest $4.6 million for the development of CRADLE. It will also have an opportunity to commercialize these technologies. These will have a revolutionary impact on its clients’ asset management and operations in urban infrastructure, energy generation, nuclear power, decommissioning and space exploration. The company’s experts will support 12 PhD students in conducting research and performing prototype demonstrations at The University of Manchester as well as at its robotics laboratories in Warrington.

Jacobs’ Strategies & Solid Project Execution Bode Well

Jacobs undertook the Boldly Moving Forward strategy in 2022 that comprises operational discipline to capture the high-growth opportunities emerging across Climate Response, Data Solutions and Consulting & Advisory. It is expected to drive significant value for customers and enhance the profitability profiles of the company’s critical infrastructure, national security, energy transition and advanced facilities sectors. The company has been executing this strategy well and is creating compelling returns while advancing sustainability and social value in global communities.

Jacobs’ efficient project execution has been one of the main characteristics driving its performance over the last few quarters. The company’s ongoing contract wins are a testimony to this fact. The backlog at the end of second-quarter fiscal 2023 was $29 billion, up 4% from a year ago. Of this backlog, Critical Mission Solutions (CMS) accounted for $8.14 billion and People & Places Solutions accounted for $17.6 billion.

Also, Jacobs announced its intent to separate the CMS business. This marks one of its strategic portfolio transformation initiatives to create a higher growth and margin business portfolio focused on critical infrastructure and sustainability. Jacobs expects to complete the transaction in the second half of fiscal 2024.

Image Source: Zacks Investment Research

In the year-to-date period, shares of Jacobs have declined 6% against the Zacks Technology Services industry’s growth of 5.9%.

Although the professional, technical and construction services provider’s stock price declined, most likely due to its narrowed fiscal 2023 guidance, its consistent contract wins will help it achieve growth momentum.

Zacks Rank & Key Picks

Jacobs currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks from the Zacks Business Services sector are:

SPX Technologies, Inc. (SPXC – Free Report) currently sports a Zacks Rank #1. SPXC has a trailing four-quarter earnings surprise of 28.4%, on average. Shares of the company have gained 51.6% in the past year.

The Zacks Consensus Estimate for SPXC’s 2023 sales and EPS indicates growth of 11.7% and 26.5%, respectively, from the year-ago reported levels.

SPS Commerce, Inc. (SPSC – Free Report) currently carries a Zacks Rank #2 (Buy). SPSC delivered a four-quarter average earnings surprise of 16.4%. The company’s shares have risen 47.2% in the past year.

The Zacks Consensus Estimate for SPSC’s 2023 sales and EPS indicates growth of 16.9% and 14%, respectively, from the prior-year reported figures.

Omnicom Group Inc. (OMC – Free Report) currently has a Zacks Rank #2. OMC came up with a four-quarter average earnings surprise of 9.1%. The stock has risen 18.8% in the past year.

The Zacks Consensus Estimate for OMC’s 2023 sales and EPS indicates growth of 3% and 6.9%, respectively, from the prior-year reported figures.

ADTN – ADTRAN (ADTN) Unveils FSP 3000 Edge OLS Solution: Key Takeaways

Written by Zacks Equity Research on May 26, 2023. Posted in ADTN, Stock Report.

ADTRAN, Inc. (ADTN – Free Report) recently introduced the FSP 3000 Edge OLS (Open Line System), which will allow network operators to fully leverage the capabilities of coherent optical edge technology. The digital transformation across various industries led to a surge in digital services, applications and online platforms. Operators must accommodate this exponential growth in data traffic and bandwidth demands and upgrade existing network capacity.

The newly-introduced FSP 3000 Edge OLS empowers operators to build advanced coherent optical edge networks that leverage ZR coherent optics and other coherent interfaces. This ensures high-performance communication, while meeting crucial optical edge requirements such as cost-effectiveness; enhanced power efficiency and lower space utilization owing to its compact design. It can also operate in extended temperature ranges, making it a robust solution suitable for outdoor deployment as well.

The low cost, ZR-optimized solution is capable of supporting any coherent format and accommodates 400G and beyond, adapting to evolving requirements. This facilitates operators with greater scalability and flexibility to match the dynamic data traffic demands. ADTRAN’s commitment to innovation is expanding its portfolio and strengthening its position in the technology services industry, which will likely yield long-run benefits.

ADTRAN continues to benefit from solid demand trends of its network solutions, driven by the accelerated expansion of fiber-to-the-home networks, upgrades to in-home Wi-Fi connectivity and the adoption of cloud-based automation tools. It is focused on being a top global supplier of access infrastructure and related value-added solutions from the Cloud Edge to the Subscriber Edge through a broad portfolio of flexible hardware and software network solutions. These products enable customers to transition to the fully-converged, scalable, highly-automated, cloud-controlled voice, data, Internet and video network of the future.

However, stiff competition from other established players in the market erode the company’s profitability. Consumer acceptance of alternative communications technologies such as coaxial cable through cable/MSOs, and cellular-based wireless services further strain margins. High technological obsolescence further increases operating costs with continuous investments in research and development (R&D) efforts.

The stock has plunged 52.3% in the past year compared with the industry’s decline of 16.5%.

Image Source: Zacks Investment Research

ADTRAN carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

InterDigital, Inc. (IDCC – Free Report) , sporting a Zacks Rank #1, delivered an earnings surprise of 170.89%, on average, in the trailing four quarters. In the last reported quarter, it pulled off an earnings surprise of 579.03%.

It is a pioneer in advanced mobile technologies that enables wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular and wireless 3G, 4G and IEEE 802-related products and networks.

Akamai Technologies, Inc. (AKAM – Free Report) , sporting a Zacks Rank #1, delivered an earnings surprise of 4.86%, on average, in the trailing four quarters. In the last reported quarter, it pulled off an earnings surprise of 6.06%.

It is a global provider of content delivery network (CDN) and cloud infrastructure services. The company’s solutions accelerate and improve the delivery of content over the Internet, enabling faster response to requests for web pages, streaming of video & audio, business applications, etc. Its offerings are intended to reduce the impact of traffic congestion, bandwidth constraints and capacity limitations on customers.

Meta Platforms Inc. (META – Free Report) , sporting a Zacks Rank #1, delivered an earnings surprise of 15.46%, on average, in the trailing four quarters. Meta Platforms is the world’s largest social media platform. The company’s portfolio offering evolved from a single Facebook app to multiple apps like photo and video-sharing app Instagram and WhatsApp messaging app owing to acquisitions.

Meta is considered to have pioneered the concept of social networking, which is why it enjoys a first mover’s advantage in this market. As developed regions mature, Meta undertakes measures to drive penetration in emerging markets of South East Asia, Latin America and Africa.

VEEV – Veeva Systems (VEEV) Offerings Adopted by Minaris Regenerative

Written by Zacks Equity Research on May 26, 2023. Posted in Stock Report, VEEV.

Veeva Systems Inc. (VEEV – Free Report) recently announced that Minaris Regenerative Medicine selected Veeva Vault QualityDocs and Veeva Vault Training to advance its global quality operations. Minaris Regenerative Medicine is expected to use Veeva Systems’ unified quality applications to better collaborate with customers and partners, improve transparency across functions and ensure compliance.

It is worth mentioning that Minaris Regenerative Medicine is a renowned contract development and manufacturing organization (CDMO) focused on cell and gene therapies.

The latest adoption is likely to provide a significant boost to the Veeva Vault Quality Suite applications under the Veeva Development Cloud solutions. Notably, the Veeva Development Cloud solutions belong to the broader Life Sciences segment.

Significance of the Adoption

The Veeva platform will likely aid Minaris Regenerative Medicine to advance its ability to improve cell therapy for the benefit of both its clients and patients suffering from a wide range of diseases, for which cell and gene therapy holds promise. The CDMO is expected to use Veeva Vault Quality Suite applications to modernize its operations and streamline its quality processes globally. This includes Vault QualityDocs to control access and distribution of content and Vault Training to create and manage role-based learning programs.

Per Veeva Systems’ management, Veeva Vault Quality applications will likely be crucial in supporting quality for cell therapies being developed and manufactured by Minaris Regenerative Medicine to treat cancers and genetic disorders that do not have any known cures. Management also believes that the partnership will likely aid the CDMO to transform content and employee qualification management.

Minaris Regenerative Medicine’s management believes that Veeva Systems provides it with easy access to documentation and training for more agility on site. Hence, being on the same platform as many of its customers will likely deliver efficiencies in information sharing and reporting and improved workflow with clients.